MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 3 — 15 Questions

Question 1

A company that produces perishable goods needs to enforce strict lot control and first-expiry-first-out (FEFO) picking. Which configuration in Dynamics 365 Supply Chain Management is essential?

Accepted Answer

Lot control and FEFO picking criteria. Enforcing strict lot control and first-expiry-first-out (FEFO) picking criteria in Dynamics 365 Supply Chain Management requires enabling lot control on the product (via tracking dimension groups) and then setting the FEFO picking criteria on the warehouse location directive. This configuration ensures that items with the nearest expiry date are picked first, which is critical for perishable goods to minimize waste and comply with regulatory requirements.

Answer

Product dimension groups

Answer

Batch attributes

Answer

Serial number control

Question 2

A company wants to use AI to predict potential stockouts and suggest replenishment actions. Which Dynamics 365 Supply Chain Management capability should they leverage?

Accepted Answer

Demand forecasting. Demand forecasting in Dynamics 365 Supply Chain Management uses AI and machine learning to analyze historical data, seasonal patterns, and external factors to predict future demand. This capability directly addresses the need to predict potential stockouts and suggest replenishment actions by generating accurate demand predictions that feed into planning processes.

Answer

Master planning

Answer

IoT Intelligence

Answer

Inventory optimization

Question 3

Which TWO features in Dynamics 365 Supply Chain Management help reduce inventory carrying costs?

Accepted Answer

Vendor-managed inventory. Vendor-managed inventory (VMI) shifts the responsibility for inventory replenishment to the supplier, allowing the supplier to monitor stock levels and trigger replenishment based on agreed targets. This reduces the need for the buying organization to hold safety stock, directly lowering inventory carrying costs such as storage, insurance, and obsolescence. Demand forecasting uses historical data and predictive analytics to align inventory levels with expected customer demand, minimizing overstock and stockouts, which also reduces carrying costs.

Answer

Intercompany planning

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Product variants

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RFID tracking

Question 4

Which THREE are key capabilities of Dynamics 365 Supply Chain Management's warehouse management module?

Accepted Answer

Cycle counting. Cycle counting is a core capability of the Dynamics 365 Supply Chain Management warehouse management module, allowing for ongoing inventory accuracy checks without full physical inventory shutdowns. It supports scheduled and ad-hoc counts based on item criteria, locations, or zones, and integrates with warehouse operations to minimize disruption.

Answer

Product lifecycle management

Answer

Service agreements

Question 5

Which TWO are examples of production order statuses in Dynamics 365 Supply Chain Management?

Accepted Answer

Released. In Dynamics 365 Supply Chain Management, production order statuses track the lifecycle of a manufacturing order. 'Released' (B) is a valid status that indicates the production order has been authorized for execution on the shop floor. 'Reported as finished' (D) is also a valid status, meaning the entire quantity or a partial quantity of the production order has been completed and reported into inventory.

Answer

Reserved

Answer

Picked

Answer

Invoiced

Question 6

A warehouse manager queries the on-hand inventory for item L0101 and receives the JSON output above:

```json
{
  "ItemId": "L0101",
  "OnHandQuantity": 700,
  "PhysicallyReserved": 400,
  "AvailablePhysical": 300
}
```

Currently, how many units of item L0101 are available to be picked for new orders?

Accepted Answer

300. The on-hand inventory for item L0101 is 700 units, but 400 units are physically reserved for existing orders. The available-to-pick quantity is the on-hand total minus physically reserved inventory, which equals 300 units. This is confirmed by the 'AvailablePhysical' field in the JSON output, which directly represents the quantity available to be picked for new orders in Dynamics 365 Supply Chain Management.

Answer

500

Answer

200

Answer

700

Question 7

A procurement manager reviews a purchase order. How many units of item M-100 are still due to be received?

Accepted Answer

50. The purchase order for item M-100 has a quantity of 100 units ordered. The receipt history shows 50 units have already been received. Therefore, the remaining quantity due to be received is 100 - 50 = 50 units. In Dynamics 365 Supply Chain Management, the 'Open order quantity' or 'Remaining delivery' field on the purchase order line reflects this calculation.

Answer

100

Answer

150

Answer

50

Question 8

A manufacturing company uses Dynamics 365 Supply Chain Management. The warehouse manager notices that a critical raw material is frequently out of stock, causing production delays. The planner wants to ensure that the material is reordered before stock hits zero. Which inventory planning feature should be configured to automatically generate replenishment orders based on forecasted demand and current inventory levels?

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management is the correct feature because it uses forecasted demand, current inventory levels, and lead times to automatically generate replenishment orders (purchase orders or transfer orders) before stock hits zero. This prevents stockouts by planning net requirements and creating planned orders that can be firmed into actual orders.

Answer

Inventory adjustment journal

Answer

Cycle counting

Answer

Quality order

Question 9

A distribution company uses Dynamics 365 Supply Chain Management. They want to improve picking efficiency in the warehouse by grouping multiple orders into a single pick run. Which warehouse process should they configure?

Accepted Answer

Wave processing. Wave processing in Dynamics 365 Supply Chain Management is the correct warehouse process for grouping multiple orders into a single pick run. It allows you to create waves that consolidate multiple sales orders or transfer orders based on criteria such as warehouse, shipping method, or inventory availability, and then release them together for efficient picking.

Answer

Batch balancing

Answer

Inbound shipment management

Answer

Load planning

Question 10

A company using Dynamics 365 Supply Chain Management is experiencing delays in order fulfillment because the picking process is not optimized. The warehouse manager wants to implement a system that directs pickers to the most efficient route based on current warehouse layout. Which feature should be configured to achieve this?

Accepted Answer

Location directives with wave processing. Location directives with wave processing are designed to optimize warehouse picking by directing pickers to the most efficient route based on the current warehouse layout. They use predefined criteria (e.g., zone, location rank, or FEFO) to generate pick work during wave execution, ensuring minimal travel time. This directly addresses the delay caused by an unoptimized picking process.

Answer

RFID (Radio-Frequency Identification)

Answer

Mobile device menu items

Answer

Product filters

Question 11

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to implement a Copilot feature that helps procurement agents draft purchase order lines using natural language. Which feature should they enable?

Accepted Answer

Copilot in procurement. The Copilot in procurement feature within Dynamics 365 Supply Chain Management is specifically designed to assist procurement agents in creating purchase order lines using natural language prompts. This capability leverages generative AI to interpret user intent and automatically populate order details, streamlining the procurement process.

Answer

Copilot in Sales

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Copilot in Finance

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Copilot in Customer Service

Question 12

A company uses Dynamics 365 Supply Chain Management. They are setting up a new warehouse and want to ensure that items are stored in locations based on their physical dimensions and turnover rate. Which configuration should they use to define storage strategies?

Accepted Answer

Location profiles. Location profiles in Dynamics 365 Supply Chain Management define storage strategies by specifying rules for item placement based on physical dimensions, turnover rates, and other criteria. They control how locations are used for different types of inventory, such as bulk storage or picking, ensuring efficient warehouse operations.

Answer

Location formats

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Warehouse work policies

Answer

Inventory statuses

Question 13

A company uses Dynamics 365 Supply Chain Management. They need to track a batch of raw material from receipt to finished goods shipment for quality compliance. Which supply chain process should they use?

Accepted Answer

Batch tracking. Batch tracking in Dynamics 365 Supply Chain Management enables the assignment of unique batch numbers to raw materials and finished goods, allowing the system to trace the material from receipt through production to shipment. This process is essential for quality compliance, as it supports recall management, expiry date monitoring, and detailed genealogy reports that track the entire lifecycle of a batch.

Answer

Transfer orders

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Consignment inventory

Answer

Inventory counting

Question 14

A company uses Dynamics 365 Supply Chain Management. They want to use AI to predict when a critical machine is likely to fail so that maintenance can be scheduled proactively. Which module should they configure?

Accepted Answer

Asset Management. (Asset Management) is correct because the Asset Management module in Dynamics 365 Supply Chain Management includes predictive maintenance capabilities that use AI and IoT data to predict when equipment is likely to fail, enabling proactive maintenance scheduling. Option A (Warehouse management) is incorrect as it focuses on inventory and warehouse operations, not predictive maintenance. Option C (Transportation management) is incorrect because it manages freight and logistics, not asset maintenance. Option D (Production control) is incorrect as it handles production orders and shop floor control, not predictive maintenance.

Answer

Warehouse management

Answer

Transportation management

Answer

Production control

Question 15

A company uses Dynamics 365 Supply Chain Management. They have multiple vendors supplying the same raw material. The procurement manager wants to automatically allocate purchase orders to the vendor with the best combination of price, lead time, and quality rating. Which feature should they use?

Accepted Answer

Vendor bid analysis. Vendor bid analysis in Dynamics 365 Supply Chain Management allows procurement managers to automatically evaluate and compare vendor proposals based on price, lead time, and quality rating. It uses scoring rules to rank bids and can automatically allocate purchase orders to the vendor with the best overall score, enabling data-driven vendor selection without manual intervention.

Answer

Purchase agreements

Answer

Request for quotation

Answer

Vendor collaboration